Bigger than Berkshire — Memento Mori 🏴☠️
Tomorrow
Joined September 2023
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Sears Revenge retweeted
And unlike an entirely new financing arrangement, the warrants already exist, have been distributed, are publicly traded and have established contractual terms.
Which brings me to what I consider one of the most important details in the entire thesis.
Section 4.06(a) of the original warrant agreement explicitly allows GameStop to extend the expiration date without warrant-holder consent. It also permits the company to reduce the exercise price, increase the exercise rate, provide additional cash, securities or other property upon exercise, and introduce alternative settlement mechanisms, including cashless exercise or cash settlement.
These aren’t hypothetical powers that management would need to negotiate from scratch. They’re already written into the agreement, subject to the applicable procedures and legal requirements.
A straightforward extension preserves the original financing opportunity. A reduction in the exercise price increases the likelihood of exercise, albeit with lower proceeds per share. An increase in the exercise rate changes the equity entitlement, while alternative settlement provisions provide flexibility if the company’s strategic priorities have evolved.
The agreement also anticipates mergers, reorganizations, reclassifications, spinoffs and other corporate actions. Its reference-property provisions allow the warrants to remain economically relevant through certain transactions in which GME shareholders receive different securities or consideration.
This is where the Teddy thesis becomes particularly interesting. If RC ultimately pursues a holding-company structure involving GameStop and other businesses, the warrants could potentially participate through the appropriate merger or exchange arrangements. That would require an actual transaction and the necessary legal structure, but the agreement already contemplates changes in the securities underlying the warrants.
I’m keeping this piece tinfoil-free, so I’m going to avoid suggesting Teddy is confirmed or that the warrants guarantee access to it. My point is that these instruments are sufficiently flexible to remain useful through a much larger corporate transformation.
2/
Sears Revenge retweeted
Me, in my new Tesla, after getting piss ass drunk at the Hard Rock casino and losing it all
Sears Revenge retweeted
This viral Sears story is sparking debate about today’s economy
He says full time retail workers could afford a comfortable middle class life back then, sparking a debate about when a steady job stopped being enough to get ahead.
[via/ GettyImages]
Sears Revenge retweeted
@ryancohen when you ask him what's happening with the warrants
Sears Revenge retweeted
The "Madoff Exception" let market-makers fail to deliver on trades.
After going to prison, Madoff gave an interview where he said words to this effect: "Underneath it all, it was all just naked short-selling."
I had economists walking the SEC & FBI through this since 2005.
Sears Revenge retweeted
BREAKING: CFTC PERMITS DEVELOPERS TO BUILD PASSIVE DERIVATIVES SOFTWARE WITHOUT REGISTERING AS BROKERS, INCLUDING FOR CRYPTO MARKETS.
Absolutely huge for perps coming onchain in the USA.
Massive news from both the SEC & CFTC today.
Sears Revenge retweeted
🚨NEW EPISODE🚨 with Chairman of @IBKR Thomas Peterffy:
Worth over $100bn, he reveals the asset he is buying as the ultimate hedge - LAND.
"If these things happen that I'm worried about, then I think land is the logical asset."
AI RACE: "Slowing down? I mean, it's a very difficult thing because China is not going to slow down. So this is basically a competition between the two hemispheres and I'm not in favour of slowing down. I would like us to win."
AI OPTIMISM: "Even if the frontier models would stop progressing at this moment, there are so many open source models all over the place and adapting them by all the other companies will result in huge increases in earnings and productivity. So I'm basically very optimistic."
FED AND YIELDS: "Well, I think the Fed will probably raise rates, although as I said, I would not be in favour of that, but they will have to do it just to demonstrate that they are independent."
HUGE PREDICTION MARKETS OPPORTUNITY: "These markets are going to become huge in my view. In the fullness of time, the majority of our earnings will be derived from prediction markets."
OWN LAND: Revealing more of is thinking around buying land, he reflects on his upbringing in communist Hungary, when everyone's assets were seized. "So I think that the same thing may happen in America. And that is the reason that I am buying land so that after the democratic socialists take everything over and they ruin all the stuff, they will eventually find out that it doesn't work and they will have to go back to protecting people's private property and return the assets they can return. And the only assets they will be able to return will be rural land."
Timestamps:
0:00 Intro
2:45 IBKR recent earnings
6:35 Interest rate exposure
9:10 Fed will hike…sadly
11:00 Optimistic about AI
13:10 But some AI overinvestment
14:45 US can’t slow down
17:10 Long path to prediction markets
22:30 HUGE opportunity of prediction markets
28:41 The risk from leverage
32:26 AI boosts IBKR
36:10 New bank trust charter
40:35 Buy Land – ultimate protection
45:08 Conclusion – have a plan
🤝 Paid partnership
Sears Revenge retweeted
SEC APPROVES LIMITED ONCHAIN TRADING OF TOKENIZED U.S. STOCKS
The SEC approved a temporary, conditional exemption allowing tokenized NMS stocks to trade on certain onchain venues using automated market makers and liquidity pools.
The exemption is limited by symbol and trading-volume caps and requires transaction transparency, recordkeeping, technology safeguards and coordination around trading halts.
The SEC says the program is designed to let regulators observe real-world tokenized stock trading before considering longer-term rules.
This is not a blanket exemption for tokenized equities. The SEC had previously outlined a temporary, volume-limited framework for testing this type of trading.
Source: SEC
Sears Revenge retweeted
Despite me being a bearish crybaby on $GME earnings, there is a very important thing to point out:
$GME dropping earnings pre-market makes no sense unless you look at what usually comes after a shift like this.
Outside of June 2024, Ryan Cohen and GME have stuck strictly to an After-Market Close routine for years. They don't just randomly change their reporting schedule to try something new.
When a company dumps earnings before the bell, it's usually about clearing the deck. Under SEC disclosure rules, you can't legally execute major corporate moves—like an acquisition, major structural change, or big proxy filing while holding unreleased quarterly financials in the dark. That’s holding Material Non-Public Information.
By pushing earnings out in the morning, they give the market all day to digest the standard numbers and paper gains. That officially clears the slate, leaving the legal runway wide open for a separate corporate announcement or M&A filing in After Hours.
They drop the financials early, clean up the regulatory requirements, and now the door is open for whatever is next.
Keep EDGAR open after 4 PM. $GME
